I’ve just been reading First Round’s The 30 Best Pieces of Advice for Entrepreneurs in 2015. I love what those guys are doing and it’s a great read. A must read really.
I want to take one of their ideas and expand on it a little. In number 20 they say:
That’s true for growth companies, but companies at the idea stage aren’t yet looking for sustainable growth, they should be looking to make sure their idea is valid. As per The Path Forward, startups should focus first on their idea, then their product, and only then on scaling their business.
Idea stage companies, then, should be making sure they have Core Product Value and be working hard to find a Magic Moment. In an ideal world the Core Product Value is strong enough that it’s easy to find features that create a magic moment.
Take our portfolio company Lexoo – they’re a marketplace connecting businesses with legal services. Their core product benefits are speed, quality, and price. Customers find more appropriate lawyers, more quickly, and get more competitive quotes than when they are introduced to a friend’s solicitor (which is still the way most people find lawyers). Their magic moment is when customers get four competitive quotes in their inbox within 24 hours. They didn’t spend hours in brainstorming sessions coming up with this idea because it grew organically from two of the three core product benefits – speed and price.